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Oman News

Oman, UK unveil over £1 billion investment plans, deepen security and trade ties

Salalah AI data centre, £7 billion export financing capacity and the return of Chevening scholarships feature in announcements during His Majesty Sultan Haitham’s state visit.

TAS News Service

info@thearabianstories.com

Wednesday, October 21, 2026

LONDON : Oman and Britain announced plans for more than £1 billion in new investment and closer cooperation in security, defence, trade and education on Wednesday, as His Majesty Sultan Haitham bin Tarik continued his state visit to the United Kingdom.

The announcements include a proposed artificial intelligence data centre in Salalah, expanded British export financing and agreements covering maritime security, space and the responsible use of AI in education, according to a statement issued by the UK Government.

British Prime Minister Andy Burnham hosted His Majesty at Downing Street, with an agreement to accelerate investment in both countries that was signed during the day.

The agreement will build on the existing UK–Oman Sovereign Investment Partnership, supporting investment in renewable energy, technology, critical minerals, space, healthcare and financial services.

UK Export Finance, Britain’s export credit agency, will increase its financing capacity for British exports to Oman to as much as £7 billion, the statement said.

UK-founded infrastructure development and investment company Yamna, backed by British investment funds, is set to sign an agreement with Oman to develop a large-scale AI data centre in Salalah.

The project’s first phase is expected to exceed £1 billion and create more than 100 highly skilled jobs in Britain through the export of British expertise, while generating returns for UK-backed investors, the embassy said.

Burnham said the partnership was delivering tangible benefits and that he looked forward to shaping its next chapter.

“Economic growth, security, defence, education: these are just some of the priorities we share as we plot a course through an increasingly complex world,” he said.

“Working together, we are leading with our values and creating opportunities for people in both our countries.”

Britain’s foreign and defence secretaries and trade minister were also due to meet their Omani counterparts to strengthen cooperation and ensure the partnership delivered benefits for both populations.

The statement described Oman as a vital British partner, citing its longstanding alliance, commercial ties and contribution to regional stability, including efforts to ensure the free flow of global trade through the Strait of Hormuz.

The countries are expected to sign a memorandum of understanding to strengthen maritime cooperation through greater information-sharing and exchanges of expertise with Oman’s Maritime Security Centre.

British Foreign Secretary Ed Miliband said the relationship, spanning almost four centuries, was founded on trust and collaboration, and that His Majesty’s visit reinforced it for the future.

“At what is a critical time for the Middle East, our close collaboration has never been more vital,” Miliband said.

“Oman continues to play a valued diplomatic role in supporting the dialogue necessary to support a pathway to peace and regional stability – essential for the global economy and global security.”

He said closer cooperation in defence, trade, investment and education would ensure the longstanding friendship remained a modern partnership serving both peoples.

Britain will also announce the return of the Chevening scholarship programme to Oman, with applications opening in August 2027.

Run by the Foreign, Commonwealth and Development Office, the programme will provide opportunities to study at British educational institutions and build lasting connections between the two countries.

Further agreements will cover the responsible use of AI in education, including support for English-language learning and helping teachers use the technology safely and effectively in classrooms.

Space cooperation will include exchanges of expertise and collaboration on space policy, scientific research and innovation between the UK Space Agency and the Omani government.

His Majesty’s three-day state programme, hosted by King Charles III and Queen Camilla, celebrates the countries’ shared history and the close ties between their people, the statement said.

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